Agenda - Council - 01/14/2014 - Laserfiche WebLink

Home

CC Regular Session Meeting Date: 01/14/2014 By: Diana Lund, Finance Information Title Adopt Resolution # 14-01-008 Extending Fee Agreement With Bearence Management Group for Agent of Record Services for the City's Property, Casualty and Worker's Compensation Insurance Services. Purpose/Background: Purpose: The city carries its liability and worker's compensation coverage through the League of Minnesota Cities. Each Municipality has a contracted representative, known as the Agent of Record, that acts on their behalf for these insurance services . Background: The City of Ramsey has had an agreement with Bearence Management Group (formally T.C. Field & Company since 1997 for agent of record services for property, casualty and worker's compensation insurance services. The last formal agreement, which was for three years, ended on December 31, 2013. A separate premium is paid to Bearence for Worker's Compensation insurance, which is 2% of premiums paid. The 2% fee is incorporated within the total premium charged. The City has not yet received its 2014 General Liability and Worker's Comp billings, but for year 2013, these amounts were $193,054 and $110,417, respectively. The city has paid the following for agent of record services in the last three years: 2011: $5,800; 2012: $6,000; 2013: $6,200. Notification: Bearence Management Group has submitted a five-year fee proposal for the years 2014-2018 with the constant rate of $6,200. The city's purchasing policy states that contracts can be longer than three years, as proposed, with city council approval. Observations/Alternatives: The proposed agreement calls for a fee of $6,200 annually. In comparison, the neighboring cities of Champlin pays $24,000 annually, Anoka - $10,000 + 2% of Workers Compensation and Elk River - 7% of total liability and workers compensation premiums. Alternative # 1: Enter into five-year contract with Bearence Management Group for the annual fee of $6,200. Alternative #2: Enter into a -year contract with Bearence Management Group for the annual fee of $6,200. Alternative #3: Do not accept the terms of the agreement and either bring back a renegotiated amount/term or request proposals from other firms. Funding Source: Agent of record fee is included in the annual General Fund Budget under professional services. Recommendation: